TKO Group Holdings (TKO)
Communication Services · $37.7B market cap · SEC CIK 0001973266
ahead of 26% of the S&P 500 · #13 of 19 in Communication Services
Next reports on Feb 23, 2027, after the close, with analysts expecting $1.17 in earnings per share.
52-week range $170.14 to $226.94. 12% below its 52-week high and 17% above its low.
The case for TKO
- Earnings per share up 186.7%.
- Has compounded revenue at 37.2% a year over five years.
- Gross margin of 60% absorbs cost shocks.
- Moves less than the market (beta 0.66).
The case against
- Expensive for its growth: 130.0× earnings, where 11% a year of growth plus a 0.6% dividend would justify about 25×.
- Priced at 8.4× sales with revenue growing only 3.8%.
- Growth is slowing: revenue up 3.8% this year against 37.2% a year over five.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 11 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 68 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 46 |
| Momentumhow the price has behaved lately | 58 |
| Stabilityhow violently it moves, what it owes and what it pays you | 57 |
- Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +3.8% |
|---|---|
| Over 5 years | +37.2% a year |
| FY2025 revenue | $4.7B (−3%) |
Free cash flow
Is it generating real cash? Can't tell: no capital spending in its filings
| FY2025 operating cash flow | $1.3B |
|---|---|
| Of profit, before capital spending | 658% |
Its filings do not give capital spending, so free cash flow cannot be worked out. Operating cash flow, which is before that spending, is shown instead, and the score judges it against a stricter bar.
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 60% |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 → now | 0.2% → 4.1% → 6.4% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $831M |
|---|---|
| Long-term debt | $3.7B |
| Net debt | $2.9B |
| Years to repay | 2.9 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 130.0× |
|---|---|
| Fair P/E for its growth | 25× |
| P/FCF | n/a |
| Forward P/E | 32.1× |
| EV / EBITDA | 28.3× |
At 130.0× earnings it trades well above the 25× that 11% a year of growth plus a 0.6% dividend would justify.
The financials, five years deep
Pulled from TKO Group Holdings's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $4.7B | $4.9B | $3.2B | $1.1B | $1.0B |
| Change on the year | −3% | +51% | +183% | +10% | — |
| Profit margins | |||||
| Operating margin | 17.6% | 0.6% | 11.7% | 47.7% | 37.9% |
| Net margin | 4.1% | 0.2% | −1.1% | 34.1% | 26.5% |
| Debt vs. cash | |||||
| Cash | $831M | $620M | $236M | $181M | $875M |
| Long-term debt | $3.7B | $2.7B | $2.7B | $2.7B | — |
| Net cash (debt) | −$2.9B | −$2.1B | −$2.5B | −$2.6B | — |
Filings
The text of this 10-K could not be read automatically. The original is linked below.